The Relationship Between Sticky Input Prices and Flexible Output Prices

question 130

Multiple Choice

The relationship between sticky input prices and flexible output prices explains the

• A) positive slope of the short-run aggregate supply curve.
• B) vertical slope of the long-run aggregate supply curve.
• C) negative slope of the short-run aggregate supply curve.
• D) negative slope of the aggregate demand curve.
• E) positive slope of both the short-run and long-run aggregate supply curves.

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Definitions:

Inferior Rectus

A muscle in the eye that controls downward eye movements, part of the extraocular muscles.

Medial Rectus

A muscle in the eye responsible for moving the eyeball towards the nose, part of the extraocular muscles.

Temporal Lines

Curved lines on the lateral surfaces of the skull where the temporalis muscle attaches, important for chewing movements.